focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
The placing looks ok although there is an unknown number of shares and warrants to be issued after 30 September 2024:-
"Additionally, in line with the Fundraise and to facilitate immediate free cash to be used for working capital purposes and to assist in delivering the strategy of the Company, the Directors of Blue Star have agreed to receive their remuneration in ordinary shares in the Company, in lieu of cash, on the same terms as the Placing Shares, which include Warrants, for the period between 1 February 2024 and 30 September 2024. The Directors will not be issued ordinary shares or Warrants until after 30 September 2024. A further announcement will be made in due course."
One was the now Cizzle, the other one went private after a family member of the board brought a sizeable chunk - I can't recall the name (shareholders were left with nothing). Here we've got directors with no real shares in the company according to the info above. They will still draw their salaries - no matter what. Conditions in the small sector have been bad for the last few years. This is all my opinion and I do want this share to do well.
I hope that I am wrong StockCheque. Just going on past experiences I've been in at least three shares where I've seen Spreadex TR1s followed by non-protected portfolio transactions followed by RTO or end of company.
In the placing rns they also mentioned that:-
256,889,280 shares went to the directors (including 100 million to CB) for fees for the period Jul - Nov 23 or Aug - Nov 23
242,000,000 shares went to the consultants for fees Jul - Nov 23.
This leaves 2.449 billion shares unaccounted for (about 22.5% of the total shareholding)
On the last raise so far we know the following took shares:-
Christian Cordier (director at African Pioneer with CB) - 144 million
Colin Bird - 40 million
Raju Samtani (Finance Director BZT) - 48 million
This leave 2.948 billion shares unaccounted for - 27% of the total shares.
Looking at the previous large investors we know that Tiger Royalties & Investments PLC is Raju's company.
Sanderson Capital Partners Ltd - the director is Tanvier Malik (in November 2023 he held just under 10% of the company).
Tavira Securities Ltd - the chairman is Eliot Goodfellow who held (I think!) 3% of the company in November 2023.
It really a shame because I do believe there will be a bull run on copper but like Leyla my expectations are non-existent given CBs past actions.
Howezap, also the analogy robbing Peter to pay Paul wouldn’t apply here. As CB has robbed XTR to buy options for himself. The raise was around 30% lower than the previous closing price, diluting existing shareholders considerably yet, his own position is strengthened.
Not sure of the long term prospects of this company - I do think that as a cash shell alone it is worth more than 750k and my target is £3 million (which is 4 times its current value). I know Phimx and the buffalo will disagree. Given the history of the company this is as high risk as AIM gets IMO.
If what you say is true Howezap, that the companies are managed with the right people in place and the strength of the companies will allow it to survive in the next few years then the only people who will get shafted will be the PIs.
The only conclusion I can see here is that CB is hoping that the assets will be worth something and is looking to sell up. The problem with this theory though is I don’t think that money is CBs main motivating factor. Yes, he has an immediate need for money but at 80 years old with lots of companies to manage - I think he probably has sufficient resources to retire. The questions I have is what is the quality of the team like at bzt, what is the successor policy? Copper mines are taking a long time to get into commission. If you think that we are heading for a bull run on copper in the next two years - how can bzt survive and capitalise from this.
I agree with Snowdrops here. Everybody seems to be looking for a 10 bagger overnight and it is really unrealistic. There will be ups and downs with shares and for the average AIM investor you are looking at a longer term holding. Well done to anyone who can successfully trade on AIM - not a skill I have.